$100M LNG plant proposed on Route 20 in Charlton

By Matthew Tota, Correspondent

Sunday

Nov 4, 2018 at 12:01 AM

CHARLTON — On the fiercest of cold days this winter, thousands of Massachusetts residents will rely on the liquid form of natural gas for heat, and they likely won’t care where it comes from or how it gets to them, as long as it keeps their homes warm.

Behind the scenes, though, utility companies take note every time a gigantic tanker ship carrying liquefied natural gas (LNG) docks at the Distrigas terminal in Everett.

The imported LNG, arriving from places like Trinidad and Russia, helps offset their natural gas supplies, but, with no power over the domestic and international markets, they worry about relying solely on overseas fuel. To assure reliability, the companies say, the state must find ways to create its own sources for LNG.

Charlton could emerge as an option.

A Pennsylvania energy company will field questions from residents later this month about its plan to create, store and ship LNG on industrial-zoned land off Route 20. Utility companies like National Grid will buy the liquid gas.

Liberty Energy Trust has proposed construction of a more than $100-million LNG plant — operating under the name Northeast Energy Center LLC — on roughly 25 acres of a 220-acre wooded site at 249 Sturbridge Road (Route 20). The company will work with engineers from the Methuen-based firm Northstar Industries, in which it owns a major stake.

The project has entered the state’s permitting process and needs approval from both the state Department of Public Utilities and the Energy Facilities Siting Board. Liberty hopes to complete construction on the plant by 2020.

DPU has scheduled a public hearing on the project at 7 p.m. Nov. 13 at the Charlton municipal offices, 37 Main St.

Beyond a wetlands permit from the Conservation Commission, Liberty does not need any formal approval from town officials to begin construction. Still, the company has opted to seek site plan approval from the Planning Board, as well as the blessing of the Board of Selectmen, fire chief and town administrator.

Liberty has billed the project as one way for the state to secure a consistent, local well of LNG, and potentially begin weening itself off more expensive energy options such as oil.

Last winter, the average Massachusetts household using natural gas paid about $846 for heat, while oil customers paid about $2,278, according to projections from the state Department of Energy Resources. Propane customers paid about $2,248, and homes using electric heating paid roughly $738.

Because of higher energy prices, average household bills across the country will rise this winter, the U.S. Energy Information Administration said. The EIA’s forecast for winter 2018-2019 has natural gas bills rising by 5 percent, oil by 20 percent and electricity by 3 percent (propane will remain the same).

“Although the increased expenditures largely reflect higher energy prices rather than colder temperatures, a warmer-than-average winter would see smaller increases in expenditures and a colder-than-average winter would see larger increases in expenditures compared with last winter,” the EIA wrote.

According to Liberty’s filing with the state, the Northeast Energy Center will have the capacity to produce per day about 250,000 gallons of LNG – created through a super-cooling process, during which the fuel’s temperature falls to around 260 degrees below zero. Ten 100,000-gallon tanks will store the LNG on site.

The plant will employ eight to 10 people, project officials said, while creating several local construction jobs.

The plant would receive natural gas from a subterranean line that taps into a portion of the 11,750-mile Tennessee Gas Pipeline, which runs through Charlton; the new gas line will travel about a mile and a half between the plant and the pipeline. Liberty will also build a new gas meter station near the Charlton-Sturbridge town line.

Tanker trucks will transport the LNG to other storage sites owned by utility companies that have purchased the gas from Liberty.

Project officials said the LNG will sit in storage during the spring and summer months, ready for utility companies to turn it to vapor again for fuel in the winter when they need it.

“Effectively, we’re creating an efficient form of energy storage that would power some parts of the state when it’s really cold,” said Boris Brevnov, Liberty’s managing director. “So far, (LNG) is the best kind of energy storage that exists in the U.S. today.”

Mr. Brevnov said that the plant, beyond providing tax benefits to the town, could create economic development through luring companies to Charlton, such as manufacturers seeking a cost-effective, efficient power source. “Picture a potential industrial park: You will have gas for manufacturing and other businesses. You have a fantastic feedstock,” he said.

Town Administrator Robin L. Craver said Liberty has talked about potential tax revenue for the town, but both sides have not yet agreed on anything specific.

“During the time we were considering the Proposition 2½ override, one of the most frequent comments from residents was the need for more economic development,” Ms. Craver said. “This project would fall in our target area for economic development on Route 20, but it’s too early to tell. We don’t have actual numbers.”

Ms. Craver also said the town has not ruled out arranging its own deal with Liberty to purchase LNG as a local fuel source for its municipal buildings.

Her main concern with the project is safety. To that end, project officials have met with Fire Chief Edward J. Knopf to provide an overview of the plant. And Liberty agreed to cover the cost of training and equipment for the Fire Department.

Chief Knopf could not be reached for comment.

Residents have already weighed in about the plant on the Facebook page, Charlton Happenings, with many of the comments dealing with safety at the plant.

According to a report by the National Association of Fire Marshals, LNG itself is not flammable or explosive; and it is typically stored in airtight tanks, which are surrounded by embankments to contain any potential leaks.

If the liquid is spilled outside of the tank, though, the report said, “it will mix with air and either ignite forming a pool of fire or will rapidly vaporize.” The report added that an explosion could occur if the volatile mixture of LNG and oxygen “is confined in the presence of an ignition source.”

Still, the association said, strict oversight and guidelines mean the overall risk for major incidents at LNG plants has remained low.

In its petition to the state’s Energy Facilities Siting Board, Liberty said that in addition to a fire and gas detection system, the plant will have water-storage tanks in case of a fire, as well as portable handheld chemical fire extinguishers.

Security at the plant will be tight, Liberty said, including a fence around the facility monitored by security cameras and infrared sensors.

Town officials first heard about the project in 2016, but it stalled as Liberty went through management changes. The company re-introduced the plant in May.

And though they’ve already learned about the plant, selectmen want to treat it as a new project. “It’s been two years since anybody has been before the board on this,” said board Chairman John McGrath.

As of now, Liberty has not actually purchased the land in Charlton. Rather, the company has signed a binding option to buy it from owner Green Hill Realty Trust. Project officials would not reveal the price Liberty offered for the land. Local developer Daniel Prouty, a trustee in Green Hill Realty and co-owner of Millyard Industrial Properties, would not comment on the deal.

In its filing, Liberty said it reviewed several other sites for the plant, including locations in New Hampshire and Connecticut. Project officials chose the site in Charlton largely because of its proximity to the Tennessee Gas Pipeline. During the spring and summer, they said, the pipeline is underused, allowing them to draw from it to create LNG.

Liberty has started discussing its plans to tap into the pipeline with owner Kinder Morgan, the largest pipeline company in the country.

National Grid has an agreement in place with Liberty and Northeast Energy Center LLC to buy the LNG. National Grid intends to use the LNG from Charlton to help heat homes in high-usage periods, project officials said. The agreement would last for 15 years after the plant is built.

“Our agreement with Northeast Energy, along with other approved LNG agreements, allows National Grid to continue to serve winter peaking requirements in a least-cost, reliable manner,” National Grid said in an emailed statement. “The agreement, along with other LNG agreements, will also provide sufficient liquefaction capacity to enable National Grid to fill its storage tanks during the typical refill season.”

According to the utility company, on frigid winter days, LNG can provide up to 39 percent of its gas supply to New England customers. National Grid, which has more than 930,000 natural gas customers in the state, has made it a priority to secure local sources of LNG.

The Charlton plant represents one part of those efforts. The company’s other plans include a $180 million LNG processing plant slated for its Fields Point site in Providence, Rhode Island. That project received federal approval last month.

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.